Nvidia (NASDAQ:NVDA) has faced a headwind of sorts with delays to its Blackwell GPU architecture. However, the chip giant remains on track to ramp up shipments of the next-gen GPU platform in the January quarter (FQ4).
This insight comes from J.P. Morgan’s Harlan Sur, an analyst ranked in the top 1% of Street stock pros, who shared the update after an investor meeting with Nvidia’s Senior Director of IR and Strategic Finance, Stewart Stecker.
According to Stecker, the initial product yield issues were now resolved following a mask correction on the B200 GPU chip. Nvidia remains on schedule to ship “several billion dollars” worth of Blackwell GPU platforms in fiscal Q4 (January quarter), with a “continued strong ramp” into calendar year 2025.
Stecker also recommends not paying too much attention to some noises being made around rackscale portfolio changes. This specifically pertains to recent reports on a discontinuation of the GB200 dual-rack 36×2 NVL72 rackscale solution. The company emphasized the Blackwell GPU platform’s ability to support more than 100 different system configurations, including the NVL72 and NVL36 solutions, compared to just 19-20 configurations for the previous gen Hopper GPU platform.
Stecker also struck a confident tone on the “sustainability” of XPU (i.e., AI-capable processing units) infrastructure spending over the next several years. This will be driven by the exponential scaling of GenAI and foundational models, which demand increased training compute capacity. Nvidia also highlighted the growing adoption of inferencing across markets, the early stages of enterprise and sovereign AI initiatives, and the “strong push” toward accelerating existing workloads – such as data processing, databases, and analytics – within traditional CPU-centric datacenter infrastructure. Overall, Nvidia estimates a $500 billion annual infrastructure investment will be needed to support both new AI workloads and the acceleration of existing ones.
Summing up, Sur noted, “We believe NVIDIA continues to execute across all segments… We expect the data center segment to grow strongly as hyperscale customers continue to embrace GPU-accelerated deep learning for processing large data sets.”
To this end, Sur rates NVDA shares an Overweight (i.e., Buy) with a $155 price target, suggesting the stock will gain 26% over the coming months. (To watch Sur’s track record, click here)
That take chimes well with general Street sentiment. Based on a lopsided mix of 39 Buys vs. 3 Holds, the analyst consensus rates the stock a Strong Buy. The $152.44 average price target is only slightly lower than Sur’s objective and implies returns of 24% are in the cards for the next year. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
